Microeconomics Quiz

What does Microeconomics study?

• The overall economy of a country

• Individual and business decision-making

• International trade policies

• Government budgeting

In Microeconomics, what does "demand" refer to?

• The total production of goods

• The amount of money businesses earn

• The desire and ability to purchase goods

• The government’s spending on goods

What is a "market"?

• A physical place where goods are stored

• A system where buyers and sellers interact

• A chart showing economic data

• The money made by businesses

The point where supply and demand meet is called:

• Elasticity

• Equilibrium

• Profit

• Incentive

Which of the following is NOT a focus of Microeconomics?

• Pricing of individual goods

• Behavior of individual consumers

• The national unemployment rate

• Decisions made by small businesses

What does "supply" refer to in Microeconomics?

• The demand for a product

• The amount of a product available for sale

• The total income of consumers

• The profit made by producers

When the price of a product goes up, what usually happens to demand?

• Demand increases

• Demand decreases

• Demand stays the same

• Demand becomes unlimited

What is "elasticity" in Microeconomics?

• The ability to produce more goods

• The measure of how quantity demanded or supplied responds to price changes

• The level of competition in a market

• The total income of a business

What do economists call the cost of choosing one option over another?

• Profit

• Equilibrium

• Opportunity cost

• Elasticity

If supply is higher than demand, what is likely to happen to the price?

• The price will increase

• The price will decrease

• The price will stay the same

• The price will double